Confident builders and tame prices aid growth
But last month’s factory output was modest
The outlook for the US economy brightened a little Tuesday after reports that consumer prices stayed tame and home builder confidence rose to the highest level in six years. A third report showed factory output grew only modestly in September, a reminder that the economy is still weak. Low inflation could give consumers even more incentive to spend at a time when their confidence is at a five-year high. That could boost growth and help lift American manufacturers out from their slump.